Just put it on the tab
Posted by aogWednesday, 23 June 2010 at 15:46 TrackBack Ping URL

Fannie Mae and Freddie Mack look to rack up over $146B in losses while becoming two of the largest landlords in the USA. Clearly what we need is legislation that will make sure this kind of thing won’t ever happen again. We could prohibit government agencies from buying securitized mortgages, which would have effectively prevented the recent banking meltdown as well.

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erp Wednesday, 23 June 2010 at 16:36

How ‘bout just prohibit government agencies altogether. That would solve a lot of problems at one fell sloop.

AVeryRoughRoadAhead Wednesday, 23 June 2010 at 17:33

Fannie Mae and Freddie Mack will ultimately obligate the taxpayers to cover well over $2 trillion in losses.

However, that’s in nominal terms - it’s hard to say how much of an actual burden that obligation will be. Possibly still A LOT, but probably it gets inflated or negotiated away.

pj Thursday, 24 June 2010 at 14:13

The controversy of the day in the House-Senate conference committee is over whether banks will have to foot the bill for Fannie/Freddie losses estimated to exceed $400 bn.

FHA losses will also be huge.

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